Indonesia ready for second phase of National Payment Gateway system
According to a report by the Jakarta Post, the Indonesian central bank Bank Indonesia (BI) is ready for second phase of the National Payment Gateway (NPG), locally known as Gerbang Pembayaran Nasional (GPN).
It was quoted that BI said the Indonesian Government is on track with its preparations to launch the second phase of the NPG, which will allow lenders to cut cross-bank transaction costs through more efficient processes.
On Monday, in Jakarta, BI Director for Electronics and Financial inclusion Mr Pungky Purnomo Wibowo said that the central bank had established the transaction standards and the fees to be charged to consumers for bank transactions.
The transaction standards are needed for the implementation of the planned Multi-Lane Free Flow (MLFF) system to be implemented on toll roads, which means drivers will no longer have to tap their cards at toll gates to pay the tolls.
In addition to the smoother inter-bank transactions, the NPG’s second phase will also provide payment facilities for 20 main utilities, including electricity and phone bills, Pungky added.
"BI will arrange which parties will be in charge for these utility payments," he said.
The first phase of the NPG, which was launched by the central bank in December last year, included infrastructure sharing by a number of banks to cut the cost of interbank transactions as well as cashless payment for toll road users.
In the first phase, a consortium called National Electronic Transaction Provider (PTEN) was established by 4 local interbank switching companies to manage the infrastructure sharing.
At the same time, 4 main e-money issuers PT Bank Mandiri, PT Bank Central Asia (BCA), PT Bank Rakyat Indonesia (BRI), and PT Bank Negara Indonesia (BNI) signed an agreement for their e-money interoperability.
According to the Bank’s regulation on NPG, NPG is developed to be an interconnected and interoperable ecosystem to make payment infrastructure safer, more efficient, and more reliable.
It aims to extend public acceptance to cashless payment transactions by using retail payment instruments and to become an integral part of Bank Indonesia’s efforts to facilitate national cashless movement.